To de-emphasize targeting of banks and focus increasingly on interest rates

Reducing the cash reserve ration (CRR) without loss of monetary control

CAPITAL MARKET REFORMS –

Secondary market Regulations :

Capital adequacy and prudential regulation were introduced for brokers , and other intermediaries

Dematerilization of Scrips was initiated with the creation of legislative framework and the setting up of the first depository

Settelment period was reduced to one weak

Carry forward trading was banned

Tentative move were made towards a rolling settlement system.

OUR VIEW POINT –

Financial system in India , through a measure , gradual , caution and steady process has undergone substantial transformation

Reasonably sophisticated , diverse and resilient system through well – sequenced and coordinated policy measures aimed at making the Indian financial sectors competitive , efficient , and stable

Efficient monetary management has enabled price stability while ensuring availability of credit to support investment demand and growth in the economy .

The multi-pronged approach towards managing capital account in conjuction with prudent and cautions approach to financial liberalisation has ensure financial stability in contrast to the experience of many developing and emerging economies

Monetary policy and finance sector reforms in India had to be fine tuned to meet the challenges emanating from all global and domestic shocks

Viewed in this light , the success in maintaining price and financial stability is all the more creditworthy .

The overall objective of maintaining price stability in the context of economy growth and financial stability will remain.